When scouting opportunities to make your next financial investment, digital real estate emerges as a surprisingly popular option. Digital real estate sounds like the next big buzzword in the world of investment. But the truth couldn’t be further from the fact.

What might surprise many experienced investors is that digital assets are very much here, hence why there’s so much buzz around them. In our guide, we will explain what digital real estate is, what forms it comes in and whether you should invest in it.

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What Is Digital Real Estate?

Digital assets are quoted by many as the real estate of the future. But what makes digital assets so highly sought after that we would attach a real-life value to them? Same as physical assets, digital assets also increase in value so long as you correctly maintain them. Physical assets like properties see their value soar over time.

Between August 2020 and August 2021, the price of real estate properties rose more than $50,000. After a few stable years, house prices are once again on the up, with the average house costing $408,000. Digital assets are exactly the same. If you maintain a digital asset, there is a likely chance its value will rise.

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What are digital assets?

But what are digital assets, and why do we call them digital real estate? In short, digital real estate refers to anything that you can buy on the internet. Digital assets have existed since the ’80s. Nowadays, a prime example of a digital asset is NFTs. From play to earn NFT games to social media accounts, investing in digital assets can land you a fortune.

To conclude:

• Digital real estate refers to buying and selling digital assets over the internet.
• If done correctly, digital real estate proves to be a wise alternative investment.

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In What Forms Does Digital Real Estate Come?

Since a digital asset is quite a broad term, the best way to explain it is to give you examples of what forms it comes in. In short, the first thing that comes to mind is websites. Websites are indeed a prime example of digital real estate or digital assets. But it can mean so much more. You can buy digital real estate by investing in the following.

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1. Websites

Websites are the most popular form of digital real estate. While websites come in many forms, what you should know is that investing in websites is a great way to make money. You can do that by launching a website and starting a business, buying or selling websites, selling through eCommerce, etc.

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2. Apps

Unlike websites, apps are designed for smartphone users. While smartphone users can access websites through their phones, the whole purpose of apps is to download them to our smartphones. The reason why apps are digital real estate is that you can build an app and sell it, sell through your app, or even launch your very own business.

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3. Domains

A domain is a website’s URL. Domains are one of the most lucrative digital assets. Since we are living in the digital age, every business or person needs a domain if they are to launch a website. As such, buying domain names in hopes of selling for profit becomes a wise investment strategy. While it’s more complicated than that and it requires skill and research to figure out what domain names to buy, it can indeed be profitable.

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4. Digital products

Digital products are just as vague as the term digital assets. But in short, a digital product can be a course, a guide, a membership program or anything else that you can purchase digitally.

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Should You Invest In Digital Real Estate?

Much like investing in real estate, digital real estate investing comes with tremendous investment opportunities. You can even say digital assets are more diverse and easier to invest in. Since the category of digital assets is so broad, you can find a particular niche to invest and excel in. But simply saying it doesn’t do anyone good. Here are the top reasons why you should invest in digital real estate.

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1. Enough Diversity

To reinforce a previous point, digital assets are tremendously diverse. Any experienced investor will tell you about the importance of diversification. If you’re not familiar with that, here is our guide on the subject of diversification.

By diversifying your investments, you are minimizing risk. If one investment fails, you have plenty of others to keep you afloat. But if you put all of your eggs in one basket, the chances are bigger for the basket to fall and crush your eggs. As the internet keeps evolving, we will come across more digital assets to add to our investment portfolio.

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2. Income Potential

The great thing about digital assets is that you can build enough passive income to live out the rest of your days. Digital real estate has the potential to provide big returns to investors. An eCommerce website can grow into a fully-fledged business. Selling social media accounts can be a profitable niche, while digital products can build up passive income. Simply said, the sky’s the limit when it comes to how much money you can make with digital real estate.

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3. Business Potential

To reinforce the idea that you can indeed launch a business by investing in a digital asset, allow us to give you the following scenario.

Imagine you want to transition away from your 9-to-5 job. What are your options for self-employment or being your own boss? We would imagine very few. By investing money into a website, you can grow the website and potentially launch a business from it. The possibilities are endless with a website. You could launch an eCommerce store, a drop-shipping store, a landing page for a business idea, or you could turn to the world of social media and use your platform followers to promote products or services.

But that doesn’t mean every idea will be successful. The market is very competitive, and you will need to identify a profitable business idea and launch it on the internet. Digital real estate has so much potential that you can even make money from it as a teenager.

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How To Buy Digital Real Estate

Now that we’ve laid out nearly everything you need to know about digital real estate, it’s time we ask the important question: How do you buy digital real estate? Considering the term is so broad, you should expect the answer to be just as broad.

But it doesn’t have to be. Below, we’ll tell you about a few ways to buy digital real estate and be profitable.

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1. Buy a website

The easiest thing to do is buy a website hosting and a domain name to launch your business. This could be anything imaginable, and it depends on your idea. You could go down this route or buy an already established website. Some marketplaces specialize in buying and selling websites. A few examples include Flippa, ExchangeMarketplace, Trustiu and more. Each of these specializes in a particular type of digital real estate. Do your research and figure out if you have the finances to buy an already established business.

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2. Buy and Sell NFTs

NFT stands for a non-fungible token, and it is the latest craze in the cryptocurrency space. NFTs are digital assets, and they can represent a myriad of things. It could be a piece of land in the Metaverse, a character in a video game, cosmetic items, and more. We’re currently living in an NFT-crazy world where even brands are launching their own NFTs. As such, it might just be the type of investment that suits you.

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3. Buy and Sell Social Media Accounts

You can buy and sell social media accounts the same way you would a website. While both serve a very different purpose, you can use your social media following to promote products, services, etc. With a big enough social media presence, you could even launch a career as a social media influencer.

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Finishing Thoughts

Digital real estate has been around for decades. It isn’t a new concept, but it’s absolutely the newest way to make money. While we’ve only scratched the surface when it comes to explaining all the digital assets that can help you make money, we hope that this guide explains what digital real estate is and whether you should invest in it.

Related:

• How to create, buy and sell NFTs: Easy guide
• This common real estate ‘rule’ doesn’t really work anymore

This article
originally appeared on JustStartInvesting.com and was
syndicated by MediaFeed.org.

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